WASHINGTON — When President signed the Social Security Act into law 90 years ago this week, he said it would provide economic stability to older people while giving the U.S. “an economic structure of vastly greater soundness.â€
Today, the program provides benefits to almost 69 million Americans each month. It’s a major source of income for people older than 65 and is popular across the country and political lines.
It also looks more threatened than ever.
President Franklin Roosevelt signs the Social Security Bill on Aug. 14, 1935, in Washington.
Social Security faces a looming shortfall in money to pay full benefits. At an Oval Office event Thursday commemorating the program’s anniversary, President Donald Trump claimed “we’re strengthening it.†However, the president and Republicans who control Congress have not proposed a long-term solution to shore up the program.
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Since Trump took office in January, the program faced more tumult. Agency staffing was slashed. concerned about sharing sensitive information sued. Administration officials, including the president, received Social Security benefits. Former top adviser Elon Musk said the program was a potential “Ponzi scheme.â€
Social Security remains far from the sound economic system that Roosevelt envisioned, due to changes made — and not made — under both Democratic and Republican presidents.
Here’s a look at past and current challenges to Social Security, the proposed solutions and what it could take to shore up the program.
President Donald Trump signs a proclamation honoring the 90th anniversary of the Social Security Act on Thursday in the Oval Office at the White House in Washington.
Go-broke date moved up
The so-called go-broke date — or the date at which Social Security will no longer have enough funds to pay full benefits — was moved up to 2034, instead of last year’s estimate of 2035. After that point, Social Security would be able to pay only 81% of benefits, according to released in June.
New legislation affecting Social Security benefits contributed to earlier projected depletion dates, the report concluded.
The Social Security Fairness Act, signed into law by Democratic President Joe Biden and enacted in January, had an effect. the Windfall Elimination and Government Pension Offset provisions, increasing Social Security benefit levels for former public workers.
US President Donald Trump’s sweeping domestic policy bill, dubbed the “big beautiful bill,†has been passed by Congress and is now headed to his desk to be signed into law. The bill was approved by the Republican-controlled House of Representatives with a vote of 218 to 214, following its narrow Senate approval. Passing the bill marks a major victory for Trump, as it funds his strict immigration policies, reinforces his 2017 tax cuts, and grants new tax breaks that were promised during his re-election campaign. According to the Congressional Budget Office, the bill is projected to increase federal deficits by $3.3 trillion over the next 10 years. The office also estimates that the bill could leave millions without health coverage, a claim refuted by the White House. “[The bill will] turn this country into a rocket ship. This is going to be a great bill for the country,†Trump told reporters after the bill’s approval. Trump is expected to sign the bill, which reduces health and food safety net programs, into law at a ceremony on the evening of July 4. Republican Speaker Mike Johnson, whom Trump claimed “spearheaded the drive in Congress,†praised the bill’s success, saying that “belief†was key in rallying support within his party. Republicans assert that the legislation will lower taxes for Americans across all income levels and boost economic growth. Despite its Republican backing, every Democrat in Congress opposed the bill, with Democratic leader Hakeem Jeffries warning that it would “hurt everyday Americans.â€
The will accelerate the insolvency of Social Security, said Brendan Duke at the Center on Budget and Policy Priorities. “They haven’t laid out an idea to fix it yet,†he said.
Trump again claimed Thursday that his new tax and spending law will eliminate taxes on federal Social Security benefits.
That law has a temporary tax deduction for people 65 and over that applies to all income, not just Social Security. But not all Social Security beneficiaries can claim it; among those who cannot are low-income older adults who do not pay taxes on Social Security.
AARP CEO Myechia Minter-Jordan said the number of beneficiaries is set to increase to 82 million people by the time Social Security turns 100.
“As we look ahead to the next 90 years of Social Security, it’s critical that it remains strong for generations to come,†she said in a statement.
The Congressional Budget Office said Monday that President Donald Trump’s newly signed “big beautiful bill†will increase the U.S. national debt by $3.4 trillion by 2034, according to CNBC. The extends Trump’s 2017 tax cuts and adds deductions for tips and overtime while boosting military and deportation spending. To offset costs, it includes $1.1 trillion in cuts to Medicaid, SNAP, and clean energy funding. CBO said the bill’s revenue losses will total $4.5 trillion. The CBO also projected the law will result in 10 million more uninsured Americans by 2034, while slightly reducing ACA benchmark premiums by 0.6%. The CBO found that the law will reduce average premiums for the standard ACA benchmark plan by about 0.6% in 2034.
Privatization conversation revived
The notion of privatizing Social Security resurfaced recently when Treasury Secretary Scott Bessent last month said new tax-deferred investment accounts may serve as a “,†though Treasury walked back those comments.
The public has been widely against the idea of privatizing Social Security since Republican President George W. Bush embarked on a campaign to pitch privatization of the program in 2005 through voluntary personal retirement accounts. The plan was not well-received by the public.
Glenn Hubbard, a Columbia University professor and top economist in Bush’s White House, said Social Security needs to be reduced in size in order to maintain benefits for generations to come. He supports limiting benefits for wealthy retirees.
“We will have to make a choice,†Hubbard said. “If you want Social Security benefits to look like they are today, we’re going to have to raise everyone’s taxes a lot. And if that’s what people want, that’s a menu, and you pay the high price and you move on.â€
The money will be deposited into a tax-deferred index fund account. (Scripps News)
Another option would be to increase minimum benefits and slow down benefit growth for everyone else, which Hubbard said would right the ship without requiring big tax increases, if it’s done over time.
“It’s really a political choice,†he said, adding “Neither one of those is pain free.â€
Nancy Altman, president of Social Security Works, an advocacy group for the preservation of Social Security benefits, is more worried that the administration of benefits could be privatized under Trump, rather than a move toward privatized accounts. The agency cut more than 7,000 from its workforce this year as part of the Department of Government Efficiency’s effort to reduce the size of the government.
A Social Security Administration representative didn’t respond to a request for comment.
Concerns persist
An poll found that an increasing share of older Americans — particularly Democrats — support the program but aren’t confident the benefit will be available to them when they retire.
“So much of what we hear is that its running out of money,†said Becky Boober, 70, from Rockport, Maine, who recently retired after decades in public service. She relies on Social Security to keep her finances afloat, is grateful for the program and thinks it should be expanded.
“In my mind there are several easy fixes that are not a political stretch,†she said. They include raising the income tax cap on high-income earners and possibly raising the retirement age, which is 67 for people born after 1960, though she is less inclined to support that change.
Rachel Greszler is a senior research fellow at the Heritage Foundation, the group behind the Project 2025 blueprint for Trump’s second term. It called for an increase in the retirement age.
Greszler says Social Security no longer serves its intended purpose of being a social safety net for low-income older adults and is far too large. She supports pursuing privatization, which includes allowing retirees to put their Social Security taxes into a personal investment account.
She also argues for shrinking the program to a point where every retiree would receive the same Social Security benefit so long as they worked the same number of years, which she argues would increase benefits for the bottom one-third of earners. How this would affect middle-class earners is unclear.
Retirement, interrupted: Why those over 55 are a fast-growing segment of the workforce
Retirement, interrupted: Why those over 55 are a fast-growing segment of the workforce
Joan Madden-Ceballos, a 65-year-old health care administrator, has a working life in California many would envy. Her work is flexible, fulfilling, and something she enjoys going back to day after day. "I'm a baby boomer, so work is sort of ingrained in our lives," .
While it may sound unusual for some to work past what many consider the "golden years" of retirement, Madden-Ceballos is among the increasing number of Americans who have stuck around the workforce longer as they age, according to federal data. Per 2023 data from the Bureau of Labor Statistics, are 55 or older. Three in 20 working Americans are aged 55 to 64, while roughly 7 in 100 are older than 64.
From 2003 to 2023, there was a sizable jump in people 55 and older still in the workforce—nearly a 74% increase—but there were also profound jumps in those working who are 65 and older. The number of workers aged 65 to 74 jumped 139%, and those 75 and older increased by 113%.
explored data from the to examine why the aging workforce in the United States is working past the typical retirement age.
With longer lives and better health, seniors are choosing to work
There are a few reasons why many seniors are choosing to work past their retirement age.
Older Americans today are living longer and maintaining their physical independence longer. According to Centers for Disease Control and Prevention estimates, the average 65-year-old was , compared to just . A 2023 study of 5.4 million older Americans published in the International Journal of Environmental Research and Public Health also found that across 10 years, the number of people 65 and over with functional limitations .
Work may be a way to stay active in society for some older Americans. Workers aged 50 and older told researchers their jobs have , according to the 2024 University of Michigan National Poll on Healthy Aging. Nearly half said that work gave them a sense of purpose and kept their brains sharp. This reality is even more consistent for workers aged 65 and older, with 9 in 10 saying that working helped their overall well-being.
The nature of jobs has also changed. Nicole Maestas, professor of economics and health care policy at the Harvard Medical School, noted that " in today's information economy, so for some, it is easier to continue working."
A survey of 2,000 individuals aged 50 to 79 published by the National Bureau of Economic Research also found that job characteristics . According to researchers, nearly a third would likely keep working past 70 if their job offered flexible hours compared to just a sixth without that option. Job stress, the physical and mental demands of the job, telecommuting options, or commuting times were other factors that played into that decision.
Still, a sense of purpose and job characteristics are only part of the picture. When asked why workers aged 50 and older might keep working, the top reasons the University of Michigan poll respondents gave were related to finances. Nearly 4 in 5 (78%) workers said financial stability is what keeps them clocking in, followed by saving for retirement and access to health insurance.
Some older Americans can't afford to stop working
On multiple surveys, people reported a bleak savings picture and perspective on retirement. For a 2024 AARP survey, reported not having enough savings to be "financially secure" in retirement. In 2023, 2 in 5 respondents told Gallup they expected "," down from 3 in 5 in 2002.
Numerous factors could be driving this sentiment.
People could be working longer because a dollar does not stretch as far as it used to. , while the cost of goods, measured by the Consumer Price Index, has steadily increased. Renting or buying a home than decades ago. Gen Z dollars could buy of what baby boomers could in their 20s, according to Consumer Affairs.
A few decades ago, pensions were also more common. Employers managed the money for their employees' pensions, known as defined benefits plans, and paid employees for life after retirement. It was a guaranteed income benefit that typically started at a specific age, like 62, incentivizing older workers to plan for retirement. Benefit pensions became less common because of the .
Why older Americans are working longer
By the 1980s, defined contribution plans like 401(k)s became more widespread. These plans typically lack age-specific requirements, found Courtney Coile, a researcher in the economics of aging and health at Wellesley College, . A quarter of those return to work within six years in part- or full-time jobs.
Researchers from the Georgetown Center for Retirement Initiatives also found that while current estimates use older generations with pensions as a basis for forecasts, newer retirees tended to draw down their savings at much faster rates, fueled in part because of longer life expectancies that increased the need for . Consequently, new retirees may exhaust their 401(k) assets by 85 years of age, likely outliving their savings.
Some older Americans may not even have enough to begin with. The Government Accountability Office found in 2024 that did not have any retirement savings as of 2022, and a third of households with a worker 55 or older did not have any retirement or defined benefit plan set by an employer to fall back on.
People may be working longer to delay pulling Social Security benefits, even increasing their monthly payments. Yet the existing financial safety net for older Americans is fraying. Social Security . The additional source of income for older workers, driven by a lifetime of workers' wages, is without congressional action, stated the Board of Trustees of the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds in its 2024 annual report. Social Security and Medicare alone are insufficient for people to make ends meet. Half of older adults living alone, as well as 1 in 5 older couples, "," according to a 2022 study led by three gerontologists from the University of Massachusetts Boston.
"There's a myth that Social Security and Medicare miraculously take care of all of people's needs in older age," Ramsey Alwin, president and chief executive of the National Council on Aging, . "The reality is they don't, and far too many people are one crisis away from economic insecurity."
What can be done better?
need to happen to help older Americans—and the nation—prepare for the future as aging workers participate more in the economy.
Scholars from the AARP Public Policy Institute, the Wharton School of the University of Pennsylvania, and the Brookings Institution are proponents of workers setting up dedicated emergency accounts that separate one's emergency savings from general savings, making it less likely to be spent for other needs. They also suggest that states explore putting employees into automatic individual retirement accounts unless they already have retirement plans. Vermont and 17 other states are already , according to Time. They are also encouraging the government to explore ways to make it easier for employees to move their retirement balances from one plan to another, making their hard-won savings less likely to be abandoned or forgotten.
Employers can also , knowing that older Americans will only be more present in the workplace. Employers can promote skills training for everyone, allow flexible work options, give workers a say in their schedules and work locations, and create an ergonomic workplace that addresses hazards more commonly faced by older workers, who may be more adversely affected by slips and trips. These changes may also benefit all generations in the workplace.
Strengthening financial security for an aging workforce
Leaders can also push back on harmful myths that affect older workers like their supposed opposition to change or decreased productivity. AARP research has found that aged 50 and older reported seeing or experiencing age discrimination in the workplace.
Finally, older employees who may not have enough money can try to improve their retirement outlook with a , CNBC reported. The first step is to calculate how much they might actually need for retirement rather than guessing. The , developed by the Gerontology Institute at the University of Massachusetts Boston, is a tool that can help older workers pinpoint how much they need.
Some workers may also consider shifting to part-time work before retiring fully.
Workers should also take advantage of IRS tax incentives aimed at helping workers save for the future. The could provide up to 50% of one's contribution based on a filer's adjusted gross income. There are also workers aged 50 and older can make to add to their retirement savings beyond the plan type or IRA contribution limit.
By 2040, people 65 and older are expected to comprise , according to the Administration for Community Living, an operating division of the Department of Health and Human Services. As the nation ages, the country will increasingly depend on older workers to fuel the country's economic activity. It would be ideal to have a working future, like Star Bradbury, the Gainesville, Florida-based author of "Successfully Navigating Your Parents' Senior Years."
"I know for myself that I am happier when I am working and happier when I am helping other people," Bradbury . She said that, at 75 years old, her job as an author and senior living strategist gave her "a sense of purpose and don't mind earning a little extra money. All those things add up to keep me working."
Story editing by Carren Jao. Copy editing by SofÃa JarrÃn. Photo selection by Lacy Kerrick.
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